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be directly and closely involved in any decision as to whether or

not state of emergency has arisen.

29.

China's refusal to put off promulgation of Basic Law

Our most important objective is that Basic Law should command

confidence in Hong Kong. Hope Chinese authorities will appreciate

need for confidence is all the greater in view of what has happened.

30. National People's Congress should not have power to interpret

Basic Law

Article 157 of draft Basic Law, which deals with power of

interpretation, will need to be carefully reconsidered.

There are genuine worries about this article in Hong Kong and a

way must be found to allay them.

31.

Establishment of Joint Constitutional Court

We have noted Foreign Affairs Committee's recommendation that a

'Joint Constitutional Court' should be established to interpret

Basic Law. We will be giving our considered response to that

proposal in due course.

32. Pace of democratisation should be speeded up

Recent events in China have inevitably caused Hong Kong people to think deeply about this question. This is something I have been

discussing with Governor and his advisers and with a wide range of Hong Kong opinion during my visit.

We and Hong Kong Government will be looking very carefully at

programme for advancing and consolidating effective democracy in

territory.

Have always sought to develop democracy in line with wishes of

community as a whole and to ensure that what is achieved under

British administration endures after 1997. These will remain our

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